The G20 Finance Ministers, meeting in Cairns this weekend, must take the opportunity to address the global problem of multinational tax avoidance, a QUT expert says.
Professor of Taxation Kerrie Sadiq, from QUT Business School, said the Organisation for Economic Co-Operation and Development (OECD) had made recommendations on seven key actions to tackle profit shifting and tax avoidance.
"The G20 Finance Ministers have the opportunity this weekend to endorse the initial recommendations of the OECD," Professor Sadiq said.
"To date, the most notable step towards addressing tax avoidance is the adoption by many nations, including Australia, of the Common Reporting Standard for the automatic exchange of tax information.
"This standard will allow significant inroads to be made into tax avoidance, particularly by individuals sheltering money offshore.
"This is the first step in an ambitious tax reform program. This weekend provides the opportunity for further steps to be taken."
But Professor Sadiq, who has argued Australia must use its position as G20 host to push for tax reforms which would ensure the richest multinationals pay their fair share, warned there was more work to be done.
"There is a long way to go if we are to end the issue now known as Base Erosion and Profit Shifting (BEPS)," she said.
"This week's release of the first of the OECD recommendations contains some positive signs that further advances will be made. It also recognises some hard truths."
For more information, read Professor Sadiq's original piece at The Conversation:
http://theconversation.com/g20-host-australia-faces-hard-truths-of-multinational-profit-shifting-31514
Media contact:
Rob Kidd, QUT Media, 07 3138 1841, rj.kidd@qut.edu.au
After hours, Rose Trapnell, 0407 585 901
